So you know what NFTs are, but what about xNFTs?
‘NFT.’ It was named the Collins Dictionary ‘Word of the Year’ in 2021.
Many a water-cooler conversation at the time revolved around trying to simplify the meaning of the new word in explain-as-I-am-five terms. Few succeeded.
And now things get a little more complicated with the recent introduction of xNFT. It probably won’t be the word of the year for 2023, but it could lead to some pretty interesting innovations in non-fungible tokens.
The ‘x’ stands for “executable”, meaning that an xNFT is not only a digital asset, but can also run embedded code. The xNFT itself is an app that can be distributed on a decentralized marketplace.
On a recent 0xResearch podcast, Frictionless Capital co-founder Logan Jastremski talked about the benefits of xNFTs in the Solana ecosystem.
“xNFTs are a very interesting idea,” says Jastremski, pointing to the recent successful launch of Solana MadLads as an early example.
A wallet that is an OS
The technology is made possible by Solana’s backpack wallet, which enables xNFTs to operate in a fully integrated environment, acting as an operating system for on-chain apps.
Backpack creator, Armani Ferrante, tweeted on the potential utility of the wallet: “It’s an open, programmable system built for Web3. And like any other application operating system, has a set of developer frameworks and APIs associated with it, allowing anyone to build their own xNFT apps for any protocol on any blockchain – permission-free.
“It’s a relatively simple idea” – maybe not for those in the ELI5 water cooler crowd – “but I think all good ideas seem a bit obvious in retrospect,” says Jastremski.
“And then you always ask, why hasn’t someone done this before?”
A seamless experience
An executable NFT, Jastremski says, is made possible by innovations in wallet technology, ranging from apps like MetaMask to Phantom, which “gave a much cleaner user experience” and allowed users to view NFTs directly in the app.
With Backpack, users can interact with applications, without having to leave the wallet environment to enjoy the full benefit of tokens, according to Jastremski.
He explains that xNFTs not only allow developers to remove barriers by distributing their goods directly in the wallet, but also, more importantly, provide a more seamless experience. Users don’t have to jump on another platform to use the tokenized apps, avoiding an “orthogonal experience where you go from one to the other.”
xNFTs, he says, are a “Trojan horse” for Solana, with MadLads being the first product of its kind to infiltrate the NFT market. Details of the functionality of MadLad’s xNFTs have yet to be revealed, although Ferrante suggests a few possibilities such as DeFi account management, staking and natural display of exchange listings in a single interface.
Read more: The 8 Best NFT Marketplaces – Where to Buy NFTs
“The Backpack team and what they’re building in the broader ecosystem there, I think are the really exciting things. So we’re definitely excited to work with them.”
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